tv Fast Money Halftime Report CNBC February 13, 2013 12:00pm-1:00pm EST
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twitter question, what product would marco rubio be a perfect spokesperson for, ken writes pardon me do you do you have a grey poupon? jeff writes i don't always drink in the middle of speeches but when i do, it's dos, sarah pdo. welcome to "the halftime report." the dow jones industrial average you can see has rolled over down 55 points, 13,963, below 14,000.
the s&p at 1518, the nasdaq still in positive territory by three points barely 3189. here's what we're following on "halftime" spending slowdown, why a consumer one-two punch could have the retail sector feeling the pinch and then debate it, with cisco shares sitting near multiyear highs will tonight's earnings keep the rally going? two traders go toe to toe. first our top story is the march to new highs, stocks taking a breather right now but the dow remains 1% away from record levels. the s&p a little more than 2% away. which stocks are finally going to get us to the all-time highs? we're trading the big movers with jon najarian, mike murphy, joe terranova and josh brown. josh what are you trading today? >> there are signs beneath the surface we're going to pause here, could see a 5% pullback. i don't pride myself on that
sniper type of market timing but i will tell you this, you're seeing more strength in some of the more defensive areas like utilities and consumer staples than you'd want to at this stage in the game. if we are going to have resistance, this is the perfect timing for it and so why not? most people out there are praying for the pullbacks so i wouldn't be shocked. >> hey, mcc, i think you look at ge today and it's interesting. general electric trading up 3% on the comcast news and that's what i think could keep this market going higher. ge found a way to unlock some value, people think they're going to get a higher multiple because they're focusing more on their industrial segment of business so i think as you look at the market, yes, josh is correct we need a pullback here but as the market just keeps churning and keeps moving higher, watch your technicals but you have to stay long this market, can't be short it and you can buy protection underneath. >> i find it so interesting ge is higher after getting rid of us and comcast is higher after
acquiring us. >> comcast hired by more though. >> that's better. dr. love, i interviewed mario yesterday, so i called you dr. love. dr. new world? >> i thought you were going to talk to dr. j. you tricked me. 75 new highs in the s&p today. >> today? >> yes. yes, this is right now in essence a short squeeze on pessimism. debris with josh. there are some things that make you want to be less long. you want to have less exposure to beta names. look at a caterpillar, it is a name i think you've seen the appreciation moved to the sidelines. chevron another one named accordingly and the most important thing right now the indicator that's worth watching is the currency market is the euro currency, cannot continue to appreciate as it has. >> go gangbusters. >> today it's had a significant reversal. it's sensitive, the markets are sensitive to that reversal because you're seeing equity
markets pull back, it's going to lift the u.s. stock so you have to watch the euro currency here. the one place i would not leave is the financial, i'd stay with those. >> virtual dr. j. i feel like you're sitting with me. >> right here next to these guys. >> what are you doing today? >> well, joe talked about financials just now and i agree, it's been a very narrow range in the financials so far but they are still in positive territory. so unless we give up leadership there, michelle, then i think we're okay. to the tlt side it was interesting i thought to see it slide down beneath 1.16, the barclays etf that tracks that and slid below at 1.16, and this index has been under pressure as money comes out of the bonds i think it will continue to come out of them and i think those go lower still. >> josh you were saying we were right for a pullback.
why? what is the story? >> something called the revelive strength index when you look at it for the whole globe, every market around the world, right now reading 64. ubs had a note this morning. 0 is considered overbought amongst technicians that follow that stuff. >> we're getting close to the number. this is not a big headline guy so we'll have a sequestration battle. the republicans look sanguine, let's go over it and see what happens. that is the consensus right now so it makes sense we would have trouble right here and have it coincide with the headlines, that will let people point to something but really it could be nothing more than -- >> the consensus shifted that we're immune to the rhetoric that comes out of washington. we're not. the state of the union last night in the wake of that, take a look at mcdonald's, president obama talks about a $9 minimum wage floor, what is that doing to mcdonald's today? we're not immune to the
rhetoric. the problem for the market right now is over the next couple of weeks, there's not much out there that will allow us to look at the potential story. >> merck warning the company will take a 5% per share hit due to venezuela's currency devaluation. josh, what do you think here? until they devalue again this say one-time thing, right? >> yeah, i think this is one of those things that most people should not pay too much attention to, because really at the end of the day, who knows. >> if you've been paying attention to venezuela at all you knew this was coming at some point. burning through reserves like crazy. >> when is the last time anyone's seen this guy. >> december 11th, hasn't tweeted in 151 days. >> it's a murder mystery in venezuela. i'll try not trading that one. >> i'll make it simple, pfizer is the thing you want to own. >> i'm long pfizer so i agree.
>> jcpenney boosting borrowing capacity to $1.85 million and expanding an option to borrow more in the future. jon? >> we've talked about it before these guys are all in with ron johnson, michelle, and clearly they're expanding this so that they have the money necessary to build out the rest of the stores as the concepts that he's launched in a few of the stores have played out pretty well. the bonds didn't take much of a hit on it so i guess we'll take some positive from that. stock did trade over 20 again but couldn't hold it. that's a trade level. >> cliffs natural plunging on lower oil prices. slim shady? >> you look at what happened with cliff last night. everybody out there knew they weren't going to keep the 6.5% dividend going. they cut the dividend in a big way. this quarter could be a kitchen sink quarter where they threw everything out, negative news, issuing more stock.
everything out there is terrible. remember you started to see the price of iron ore tick up recently so that could bode very well in the upcoming quarter. i'm starting to look at this stock under 30, looks like you could have a very interesting entry point. >> comcast, move to buy the remaining 49% stake in nbc universal from ge sending shares of comcast to record highs and making ge the top performing dow stock today. last night on "fast money" larry haverty compared the move spending cash to apple's. >> you look at comcast that's responsive to its shareholders. it didn't like $10 billion sitting around doing nothing. what did it do with the $10 billion, it bought some assets. apple is not asset intensive. they don't need to keep buying assets. they generated about $20 billion in free cash flow. they need to do something with that pile of cash. the discussions, they're nauseating. >> wow, he's frustrated, huh? apple stock continues to slide
as the company hangs on to its $137 billion in cash. that may be bigger than the gdp of some small countries and as it faces a lawsuit from green light's david einhorn, joe what is your take? >> takeaway apple has been clearly deficient and somewhat arrogant in regards to what the apple allocation strategy is. goldman sachs put out a report saying their take january way was that apple is the conviction buy for them, they firmly believe the capital allocation story will intensify and that the product cycles which is important for them are going to shorten. i don't know necessarily if i believe that, and i think what really has happened here is the growth investor has left the apple story, the value investor is really not satisfied what they're hearing from apple and i think it's really becoming as pete najarian correctly identified a late second half story. >> slim shady? >> what's interesting with apple and a lot of the big techs holding on to so much cash oversea, one thing that could boost this market is president
obama came out and gave them some sort of break to bring that cash back into the u.s. that would get a company like apple surging and get a company like google, cisco even would start to move on that. i think that's something to watch for but apple will do something with that cash in the near term. >> i interviewed the ceo of maximum evada, there's a bunch of italians in town this week. we talked about apple and he brought up your point about innovation saying first he doesn't do work with the company because he finds they're a terrible partner and b, they have to improve the product cycle and speed it up, take a listen. >> you have to avail yourself two years, you operate so insist ant, apple has been successful and the products are absolutely fantastic but the problem is in this environment with this market you have to evolve yourself at a much faster rate. >> they have to go faster. josh? >> apple doesn't have anything coming out majorly until like four months from now but they
put $10 billion into r&d last year, do another 10 in r&d this year. they take time. >> buy? >> we own some but no, there are so many other things i'd rather buy with fresh cash. >> coming up, signs of optimism from wall street watcher who has been negative for some time. luskin's david rosenberg is night. two traders, two opinions and one heated debate. lots more "halftime report" on the way. how do traders using technical analysis streamline their process? at fidelity, we do it by merging two tools into one. combining your customized charts with leading-edge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points. we like this idea so much that we've applied for a patent. i'm colin beck of fidelity investments. our integrated technical analysis is one more innovative reason
our next guest says we're calling for a pullback for some time, showing signs of optimism. david rosenberg is chief economist and strategist for luskin. >> thanks for having me back. >> what has happened that's turned you? >> well, you know, there's still concerns. apple p multiples of 15 and a slow growth in market it's fully priced and investor sentiment moved to wildly bullish sentiment. what's driving the market is the central banks. last year we look at a bunch of things, whether it's mario draghi in the summer saying he was going to do everything to protect the euro, we could point to getting to at least the election, the fiscal cliff behind us. historians will look back at the
december 12th fomc press release of last year when the fed came out and linked zero interest rate policy to 6.5% unemployment rate. when you do the arithmetic if you work through how long that's going to be, it means five more years of negative real interest rates. cash will be the worst performing asset going forward. >> right so -- >> what are you going to do with it? the one thing the equity market has going for it, you have over 2% dividend yield which isn't bad compared to what citi will pick up in the bond market but it's not just about the dividend yield, it's also about the dividend growth an the payout ratio is barely more than 30%, when it gets above 50 the story will be over. >> don't fight the feds is the bottom line. that helped eliminate any huge blowup in europe, it's also meaning that maybe we're not going to get a recession in the united states and probably helped out china as well. joe you wanted to jump in? >> david it sounds like maybe
you're not as rosy in regards to your outlook. you're saying i would have been right in a pullback if not for central banks being so flush with liquidity. what about the housing recovery we're experiencing and corporate earnings that are incredibly strong and what about a corporate debt market that in terms of issuance investors can't get their hands on enough of it? >> well i would say that the high yield market's become fully priced. high yield tends to lead the stock market and you know beauty is in the eye of the beholder. you talk about strong corporate earnings but you're benchmarking what we're seeing against what the consensus was heading into the quarter. if you look at the overall pattern of year over year earnings growth it's been coming down. the pattern of year over year revenue growth is coming down. you talk about blockbuster earnings they're not blockbuster but beating beaten down consensus estimates. i think the second half of the year the year we get double
digit earnings growth that's pie in the sky, those estimates will come down. it's not so much just about the overall market. at the firm i work for, we're buying slices of the market we like. >> dave, it's josh. >> i'll just say when you're talking about housing i think the home building stocks are fully priced. >> david you sound as negative as you ever did. >> david, i just want to cut you off and make sure we get this question in, because people are dying to hear your take on it. >> sure. >> so you've got 38 countries around the world pursuing either money printing or loose monetary policy. how is it possible that this vaunted gold trade is not working? how is gold beneath the 200-day moving average? is that temporary or is there some major disconnect happening here? that's what is on everyone's mind right now i think. >> well, i think that what's happened with gold and it's been a disappointment, i've been a long-term bull, that said i'm not abandoning the bullish call despite my disappointment.
it's basically if people suddenly feel they were in a safer world, why go to gold? gold in some sense is acting as a hedge against uncertainty, so i think that's a big part of it. it's why earlier today both the dollar was down and gold was down, that's pretty rare. both the dollar and gold are basically flight to safety. when you have a risk on trade like you've been having so far this year, gold will be in the penalty box. i still think that gold still will act and gold mining stocks will act as a buffer for any portfolio. you still have to manage the downside risks. >> okay, got it. >> as we look at the upside potential and other asset classes. >> david, thanks so much. we appreciate it. >> thank you. dr. j., what did you think of what you just heard? >> david, josh was pulling out of him the bull case for gold but it's played out i'd say, josh, in other words i think -- >> i agree. >> -- the gold bulls are not happy right here is they've had
this 255% increase over the last decade. that's double, more than double what ibm has brought you over the last decade and i think it got ahead of itself because everybody jumped in with paulson at 800 on up to here. i think it'd trade sideways to down. >> it's a frustrated marketplace. >> gets so angry, the gold bulls. >> you can't even mention it's possible. >> no. >> i agree. >> these guys are bewildered that their trade isn't working. it should, based on all of the inflationary -- >> the economic wonk would say maybe the gold market is telling you the central banks of the world were right to be terrified of deflation and depression. >> maybe we get an inflation uptick and the market takes off again. it's tough to say at this point but i think there's some shock this isn't working out as planned given all of the central banking activity around the world. >> the at the top of the show we talked about a potential pullback and that's something i think most folks know will
probably occur in the next four to six weeks. structurally the market is sound, looks eerily similar to 2012, we never went negative one day in the entire year. lot of what dave said is a continuance of what he said over the last couple of years, disbelief of overall where the market has gone and i think he's representative of sentiment that is not an extremely bullish conditions. >> all right, biggest pops and drops in midday trading, let's get to them. big drop, rack space down 17%, dr. j.? >> 25% increase in earnings, michelle, but that slowed and that's what people are worried about, just like with apple. if you're seeing margin contraction or slowing of growth that hits the exit button for a lot of folks, stock is down about 17%. it could go another $3 or $4 lower michelle. >> was that a smug smile? >> not a smile, nope. >> i'm talking to joe terranova, when i ask about rackspace? >> no. >> no, all right.
drop wellpoint down 4%. >> got downgraded by a firm i had never heard of but so it's up 20% since december. i'm not interested in the name but i'd look somewhere else. >> pop and groupon 5% slim shady. >> groupon brought their price target up to $9. this is a continuation of the beta trade, a stock that was up at 20, down at 2 so it's rallying in the 5.50 range but the setup looks like the next area of resistance comes 6.50 so groupon could have more upside. >> pop of 3% in netflix. joe terranova? >> you know what a sold out bull is? >> sold out bull? >> the most bearish person alive is the bull who just sold everything. >> that's what i have been have netflix over the last couple of weeks. thought it was going higher, and wait a second it went way too high. this is a stock looks positioned to go above 200 and i can't
bring myself to get back in. >> okay. pop for poland springs today. there was nothing watered down about the gop response to president obama's state of the union address except for republican senator marco rubio, already being called water bottle gate, a parched senator rubio can be seen reaching way off camera to grab what bryan williams dubbed an impassioned drink of water. tiny sip from an equally tiny bottle of poland springs is making a huge splash online. >> i can relate. it happens. >> it totally happens. we have water on the set. he must have been nervous. >> totally. coming up on "halftime" cisco soars to multiyear highs, is it a buy ahead of earnings? two traders, one big debate. should you brace for record gas prices this year? we'll find out. we'll be right back.
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cisco getting set to report earnings after the close, stock up roughly 7% over the last month. will the rally continue after the big report? joe terranova is our bull, mike murphy our bear. 1:30 on the clock. joe kick it off. >> it's a reversion to 2010 and a secular story. i am bullish on the name. why? it's about sdn, software interfacing with the hardware, they do it better than anyone, $108 billion worth of cisco, hardware is out there right now, they've got this api, the nexus 6,000, it interfaces between the two, they're stealing market
share from juniper, you saw that in juniper's report, carrier p capex. >> what joe is saying is true, cisco moved 25% coming into this report tonight. you look at the revenue growth the company is putting up, growing at about 4% to 5% annually and trading up at ten times earnings. it's the reverse apple if you will so i look at cisco, they're also sitting on a boatload of cash and after a 25% run-up into this print i think the stock has to trade off a little bit. last quarter if you remember they came out with decent earnings and the stock had a 7% rally on the news and then rallied 9% within the next few weeks after. also i think if they don't put up a great quarter, this time chambers is in trouble. couldn't be more uncertainty for the stock. >> time for rebuttal. >> mike is highlighting where it could go, i think it's going to
be solid and continue to move higher. this story goes tock ba 2010 when it was a $26, $27 stock and fell below $20. the question was can john do it? he did. >> 1999 you remember those days that was fun. downtown josh brown who won? >> i think joe is going to be right. flip a coin on the earnings but even if the number is not great it won't kill the stock. i got to tell from you a risk/reward standpoint it's a legitimate breakout, you put a stop loss in below 20, take a point in risk and this could be up 30%, 40%. there's not a ton of resistance as it clears this level so why not go long. >> let's get to kate kelly. this story keeps on giving, when she's on you know we're probably talking about s.a.c. kate? >> michelle the s.e.c. has two months to bring civil charges against s.a.c. capital or to seek an extension of another six months. s.e.c. presented interesting evidence suggesting they did not
do insider trading and equity swap they had in place during july of 2008 would have erased any profits in a pharmaceutical stock. the s.a.c. responded to an s.e.c. wells notice from november with details on the swap trade that may have blunted its economic interest in wyatt and ilanfeld in 2008. details emerged in a story earlier in "the new york times" and may have a favorable impact on investors' view of the fund. enforcement officials can still bring an insider trading case even if no profits were made but the lack of profits could put a dent in the story of i agreedy hedge fund that has up until now very much been in play. with a key deadline tomorrow for investor first quarter redemptions the timing for s.a.c. on these revelations has been good. we'll see what the impact of that is as of tomorrow, as investors weigh both the financial and the legal implications of staying loyal to
s.a.c. >> you got to wonder, right, the returns have been so good and yet the risk is, it's a terrible dilemma for everybody. >> it really is. fund managers in general, sorry, fund of fund managers and other hedge fund investors have been frustrated by the lack of returns and high fees and cohen is guilty in the high fee department. in some cases he charges up to 50% of profits. >> because he can. >> and last year he was up 12%, he's up this month not as much as his peers but solidly in the black and long short. then there's this right and we're expecting somewhere in the neighborhood of $1 billion in redemptions. it won't all be paid out immediately but it will be a big day tomorrow for all parties. >> thank you so much. gasoline bulls putting the pedal to the metal, for more jackie deangelis is host of "futures now." >> giving that gasoline prices rise in the summer investors wonder if we'll see all-time
highs. let's talk future with rich and anthony. gris we've seen a nice move from crude but gas is up more. other than crude what else is driving the moment snum. >> jackie, we're 6 million barrels supply less in the northeast where the contract is delivered than last year at this time and you have refinery issues, that's been the problem. we don't have enough refinery capacity in the northeast. we are gearing up for the seasonal demand. look at the spread between march and april, when march goes off the board at the end of the board and april becomes spot on march 1st you look at another 20% increase because april represents the specks for the summer gas contracts so we'll go higher from here. >> supply issues and refining capacity. rich do you think gasoline will hit an all-time high this summer? >> yes, jackie d., unfortunately, i think the stage is set for higher prices, certainly a retest of all-time highs based on the tacticals
here. look at the chart attempting to break out above 3.07, and you don't want to see it close below 2.99 so the bull chart will stay intact if we stay above 3. the thing i'm keying on here is commercials and hedge funds, added 90,000 contracts last week according to the cftc, this is the largest long position since april of last year as grisanti noted it's because of refining issues. we're below the five-year average on the carrier stocks, that sets the tone for the market. >> not what consumers want to hear but traders can make some money off of it. you guys get back to trading. michelle back to you. >> thank you. coming up on "halftime" a consumer one-two punch, not just higher taxes may be putting the brakes on spending. what else is hitting the consumer and which sector may suffer the most. more "halftime" after the break. ♪
let's go to "mark"market fl with josh lipton. >> leon cooperman carving out new positions. let's bring you up to speed, leon cooperman 3 million new shares in facebook, some 2 million shares in crocs and 3 million new shares in freeport mcmoran. michelle back to you. >> i'm checking right now to see if leon cooperman is on facebook. do you think is he? that would be almost frightening. mike murphy what do you think? >> i think facebook is undervalued. the recent pullback created a great buying opportunity in the $27, $28 range. everybody is focusing on the negatives and just like it did six weeks ago i think the stock will rally up into the low 30s quickly. >> a agree it's excellent to buy facebook under $28. >> i wouldn't call it undervalued. >> i suspect he'll be a classic
example of the institutional investor who moved out of apple and taken that money and gone into a better growth tech name which is facebook. his apple position i suspect is lower than it was three months ago. >> i'm looking search leon cooperman. nothing comes up. >> the trader instinct in me i would say his position in apple is probably lower. >> it would be also interesting michelle to see what leon did with capital one financial, cof. this was one he was loading into in the tail end of last year, talked about it and then it had that big misstep, the oopsy in the recent quarter. did he add to it? that's another one i'd like to see how the position changed. >> josh mentioned two and i can't remember the second one because we didn't get to anything after facebook. >> crocs. >> crocs? >> my kids aren't wearing them anymore. >> a guy i was dating was
wearing them. real estate mogul sam zell, take a listen. >> in the housing market i think that a significant amount of the ebulence we're reading about every day is the press, you know, selling a story. i also think that everybody ignored the fact that there's still 3 million to 4 million houses inburgtory. >> mike murphy, eminem, hence when i call him slim shady even though you're not in the housing trade, what zung? >> i'll disagree with sam even though he's been successful obviously. to say the media is overhyping housing is dead wrong. the media has a lot of catching this up to do. there are houses in purgatory owned by banks that banks have taken a write-off on, that's why the xlf is sitting at a 52-week
highs. these companies have a lot of room to go because the only knock on them, the only thing holding them back right now in my opinion is the valuation case. as they expand in the coming year you'll see the valuation case lose ground and you're going to see more upside in the builders. >> are you italian? >> i am. >> if they pray enough will they get out of purgatory? >> i don't know. the market is trading off of the euphoria surrounding a little bit of a rebound, 52-week high for bank of america, 52-week city for citi. do you think we'd have the 52-week highs absent a housing recovery? louisiana pacific going downstream in the housing trade, home depot and lowe's. >> the spring selling season started in january. the realtors were getting calls january 2nd. it's not anecdotal, it's empirical. we see that core logic's numbers and starting to see that in the
schiller data. it's not controversial, it's happen. retail sales prices didn't rise up in further. dennis gartman joins us now. hey, dennis. >> hi michelle how are you? >> good. tell us what you think about retail here? >> something that caught my attention over the weekend was the fact that tax rebates to taxpayer this is year are lagging so far behind any of the previous years and most consumers, i shouldn't say most but a great number of consumers depend on the tax rebates. given what has happened to retail shares, you look at the etfs having gone skyrocketing higher and being someone who looked to buy one thing and something else, buy yen, sell euros, buy gold sell corn, i'm looking at selling the retail shares and buying the s&p against it just because of that slowing of tax receipts. i think that's going to weigh heavily upon the consumers. taxes are going up upon them and
the tax rebates they thought they were going to get have lagged far behind. perhaps it's a decent punt to sell the retail etfs and hedge it by buying the s&p future against it. >> hey, dennis, it's mike murphy. >> hi, mike. >> looking to pick out one name looking at target. target had its pullback a little bit but if you look at the move in this one name, it looks to me like it wants to take out highs and then you can add walmart to that list, you can add a lot of them. if you look as a hedge it may underperform, but on a standalone basis the tax issues or lower -- higher taxes, lower tax checks on individuals isn't enough to slow down the retail trade here. i think people are getting back into the market. >> dr. j.? >> yes, mr. gartman, dennis, we saw each other down in florida on monday, great to see you face to face, unfortunately we're at this distance here, but i happen to agree with your call, in particular you heard what gris
and those guys were just saying about the gasoline prices. i think that's another head wind that was a wind at people's backs when the gasoline prices were dropping. now that's going up along with the taxes, that's a one-two punch and why the retailers should be stop sign. >> dennis, your thoughts? >> well, michelle that's one of the reasons i'm not wise enough to choose nordstrom's or to choose coach or any of those. i am smart enough to say i'll use the etf and looking at what is happening i understand how strong retail sales have been. i'll sell the etf as jon was saying you have gasoline prices going up, taxes have gone up, tax rebates have gone down, that to me looks like a toxic test. i can be wrong. i've been wrong before but it looks like a good trade. >> you're meeting skepticism on the set dennis but that's what makes the market. thank you. >> thank you, michelle.
good to see you. coming up we'll hear from the head of one exchange who wants to speed up trading, wants to embrace high frequency trading, wants more dog pools. what? "halftime" back in two. my mother made the best toffee in the world. it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. i never really thought i would make money doing what i love.
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all right, everybody coming up on "power lunch" president obama laying out his cyber security plan, a big meeting in washington with lots of top officials and people from private sector to discuss it. we'll tell what you it means for american businesses, it's a major threat. ge stock at four and a half year highs after selling its stake in nbc universal, the parent of cnbc among others to comcast, a big dividend hikes ahead potentially for ge and today on the "power pitch" we'll give sym
cat 60 seconds to make its pitch to the cnbc team and top v vc hocho. are you in or out? you get to vote. back to michelle and the "halftime" crew. luis daez is ce off the mexico stocking change. in mexico they're trying to get as much hft as they can. take a listen. >> yes, we're embracing is because they're bringing in liquidity to the mexican exchange and we now have a new technology which is the second fastest in the world, just after the swiss exchange, so we now have around 30% of our trades being done by high frequency traders. >> you also have dark pools, it's the only place in latin america where one can access a dark pool, right here those are also controversial.
why did you do that? >> well we did it because they were going to compete with us so we have a dark pool within the exchange so that if anonymity is the trade that people want to do and the traders want to do, let's have them do it within the exchange and not with someone who is competing with us. >> dr. j., i know you are a huge fan of high frequency trading. what do you think about mexico's move to try to get more and more of it? >> i wish they'd take all the high frequency business down there, take every last share of it michelle. there's bruins capital markets, i think there's artificial liquidity offered in the nanoseconds and if they want it down there in that market, i say let them have it, it's certainly nothing that we would hang our hat on and say boy, this is what really makes america great, because it's not. >> guys hold on, a voice in my ear is telling me leon cooperman has confirmed or we have confirmed he's out of apple
completely, guys. we knew he was paring back the position and now down to zero on apple? thought? >> that's an excellent tactical move, good for him. >> he's into facebook. >> i think he likes to be involved with companies that are on the upswing, not just in terms of price but this one has gotten so murky and difficult, you only have 100% of capital, you've got slices and you can only put it in so many different stocks. >> there's so much negativity surrounding facebook. the $38 print is still going to get there and once the tide swings to the positive side on facebook people will be jumping over themselves to upgrade. >> he had 266,000 shares as of last filing and gone down to zero. >> i want to walk you inside the conference room of the conversation that institutional money managers are going to have. the obvious thing would be to say leon cooperman is getting out of apple, now i want to buy it. that's not the case. this becomes the excuse. someone well respected as leon
cooperman for those institutional managers holding apple they could say look it's time to get out. guy like leon cooperman is getting out. first in, others will follow. >> isn't he seen as a value guy? here's the thing if he's seen as a value guy, when you've seen apple fall as much as this, this is the point where a value guy in theory steps in and a value guy is stepping out at this point it's a bad time, right? >> we are in the middle of growth and value and i think leon is seen as a value guy but leon will step out and he will also own growth and it's obvious he owns growth in a lot of his energy and he owns growth in -- >> dr. j. you're dying owns -- >> dr. j, you're dying to get in, i can see. >> i don't disagree. i think he is frustrated as many of his peers are about that capital allocation and i think the stock performance was the number one thing that took him out, michelle, and we can ask him next time he is on. but maybe number two or maybe even number one was that capital
allocation. the fact that they didn't address any of it when the tax structure was lower last year and the fact that they have basically put up a big red light as far as listening to einhorn or anybody else with what they should do with their capital. i think the board is deaf here and i think that -- >> let me talk to the man in my head. do we know if this is in response to what tim cook did or didn't do? nothing on timing yet. >> okay, the euro that's been on a tear to start off the year is largely flat. currency traders await the upcoming meeting. let's get to the trade with andy bush of the bush update. andy, good to see you, wow. you need a little bit after rest, right? holy smokes. what are you thinking at this point? >> we've had great volatility over the last couple of weeks, leading into the g20. even more volatility with the g7 statement earlier this week. we had appreciation of the yen. then crazy things have gone on with sweden. they left their interest rates
unchanged but said they like the strong currency. they got a stronger currency right after this. so basically what i want to do is continue to sell the euro into the g20. because i know there will be more comments from politicians. not only that today, we got an anonymous ocb member saying they are worried about the strength of the euro. so that will continue to sell until after the meeting. >> you never know what will come out of swedes. so what are your levels? >> it is a good trade to get on. leaving the stock about 50 points higher, looking for about 150 points lower, 13350. get your trade on before the g20, then get this thing off. >> andy, thank you. >> you bet. >> you tweet it, we trade it. four plays on four stocks that you asked for on twitter. we're back in two.
after the bell, what is the trade, dr. j? >> well, i'm going to go with them having another strong quarter, michelle. they've traded side ways for the past three months, maybe even longer. and i think they are about due for a break out. >> slim shady? >> looks like it'll take out the 75, 76 level. own wal-mart here. >> hess, joe, how do you trade that one this is. >> momentum swung higher. you see restructuring going on. john mess is amenable to it. >> ibm, buy, sell or hold, josh? >> terrible vexing set up here. i would be seller of the stock. they beat earnings. you had a nice gap up. stock is now 4% lower than that gap. looks like she wants it roll over. i would just walk away on short term basis. >> follow me on twitter. final trades up next on the halftime report.
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